I have been saying this for years…..As it widens the curve gets worse…..this is basic economics we have ignored for years….this is why China is having problems as well….2 dollar a day workers cannot buy 200k condos….ie why they are having huge lending issues with banks in China….BTW low wage workers consume government spending rather than contribute…..We must raise minimum wage above poverty line, fix the bad trade deals and fix immigration. Trade and immigration policy cannot be a tool to drive wages down.

………..Now, an analysis by the rating agency Standard & Poor’s lends its weight to the argument: The widening gap between the wealthiest Americans and everyone else has made the economy more prone to boom-bust cycles and slowed the 5-year-old recovery from the recession.
Economic disparities appear to be reaching extremes that “need to be watched because they’re damaging to growth,” said Beth Ann Bovino, chief U.S. economist at S&P.
The rising concentration of income among the top 1 percent of earners has contributed to S&P’s cutting its growth estimates for the economy. In part because of the disparity, it estimates that the economy will grow at a 2.5 percent annual pace in the next decade, down from a forecast five years ago of a 2.8 percent rate…………